202 V1.4 AR Renewable Energy Activity Requirements
202 V1.4 AR Renewable Energy Activity Requirements
Contact Details
The Gold Standard Foundation
Chemin de Balexert 7-9
1219 Châtelaine
International Environment House 2
Geneva, Switzerland
Tel: +41 22 788 70 80
Email: [email protected]
SUMMARY
This document provides necessary guidelines and requirements for Renewable Energy
activities seeking certification of the project design and/or to issue Gold Standard
Certified Impact Statements and Products for example; GSVERs.
TABLE OF CONTENTS
SUMMARY ___________________________________________________________________1
TABLE OF CONTENTS ................................................................................................. 2
1| SCOPE AND APPLICABILITY ___________________________________________________3
1.1 | General Applicability ............................................................................. 3
2| ELIGIBLE PROJECT TYPES ____________________________________________________3
3| GENERAL ELIGIBILITY CRITERIA _______________________________________________7
3.1 | Types of project: .................................................................................. 7
3.2 | Location of project: ............................................................................... 8
3.3 | Project area, boundary and scale: ........................................................... 8
3.4 | Suppressed demand.............................................................................. 9
3.5 | Stacking ............................................................................................. 9
4| ELIGIBILITY PRINCIPLES AND REQUIREMENTS ___________________________________9
4.1 | Principle 1 – Contribution to Climate Security & Sustainable Development .....10
4.2 | Principle 2 – Safeguarding Principles .......................................................10
4.3 | Principle 3 – Stakeholder Inclusivity ........................................................10
4.4 | Principle 4 – Demonstration of Real Outcomes ..........................................10
4.5 | Principle 5 – Financial Additionality & Ongoing Financial Need ......................10
ANNEX A – ADDITIONAL ELIGIBILITY CRITERIA FOR SPECIFIC PROJECT TYPES ___________12
1| TECHNOLOGY SPECIFIC ELIGIBILITY CRITERIA __________________________________12
1.1 | Hydropower project activity ...................................................................12
1.2 | Project activity using biomass resources ..................................................14
1.3 | Project activity using Biogas (landfill gas and biogas from agro-processing,
wastewater and other residues) ......................................................................16
1.4 | Project activity using Waster Heat/Gas recovery .......................................16
1.5 | Fossil co-generation .............................................................................17
1.6 | Waste incineration and gasification .........................................................17
1.7 | Waste handling and disposal ..................................................................19
1
A mini-grid is defined as power system with a total capacity not
exceeding 15 MW (i.e. the sum of installed capacities of all generators
connected to the mini-grid is equal to or less than 15 MW) which is not
connected to a national or a regional grid.
2
Renewable Energy project supplying electricity to mini-grid are
exempted from this eligibility requirements and shall follow Gold Standard
Community Services Activity Requirements for GS-VER or GS-CER
projects.
3
Office of the High Representative for the Least Developed Countries,
Landlocked Developing Countries and Small Island Developing States <
https://www.un.org/ohrlls/>
4
The penetration rate is the ratio of installed capacity of proposed
renewable technology in the grid to total installed capacity of the grid in
the host country or region. The 5% threshold will be periodically reviewed
and updated, potentially with specific tools and approaches for different
technologies/regions in future.
5
Refer to the latest country classification by income available at
https://datahelpdesk.worldbank.org/knowledgebase/articles/906519
6
ibid
7
This outcome only affects the eligibility of projects issuing GS VERs or
GS CERs, projects applying other pathways (for example Gold Standard
Renewable Energy Labels) are not affected.
8
The relevant rule update was released on 17/01/2020, available here.
9
The relevant rule update was released on 13/05/2020, available here.
10
It refers to the conflict zones - as no-go areas for investment purpose,
which might affect the decision making considering the long-term risk to
the investment.
11
The latest version of CDM methodology tool “Common practice” with
applicable adjustments to include projects considered carbon revenue
shall be applied to demonstrate the exceptional circumstances i.e., the
project activity is not “common practice” in the relevant region of the host
country.
3.2.1 | Eligible projects may be located in any part of the world. Hydropower projects
shall not be located in High Conservation Values (HCVs)12 areas. Please refer
to Annex A for further information on hydropower projects.
3.3.1 | Project Area and Boundary shall be defined in line with the applicable
Methodologies and Product Requirements.
3.3.2 | The following scale categories are applied to RE activities:
a. Microscale
i. RE project issuing less than or equal to 10,000 GS VERs
ii. RE project seeking any product other than GS VERs with an installed
capacity less than equal to 2 MWelectricity / 6 MWthermal
12
Refer to High Conservation Value Resource Network for definition of
High Conservation Value Area. Available at https://hcvnetwork.org/
13
For solar photovoltaic applications, 15 MW(p) may be defined by
manufacturers’ specifications under testing conditions of 1000 W/m2 and
25 deg C or 600 W/m2 and 35 deg C.
3.5 | Stacking
3.5.1 | A single Renewable Energy project may potentially pursue any number and
combination of Certified Impact Statements or Products. However, certain
Product Requirements, which supersede the generic requirements stated in
this document can set restrictions on co-issuance of Certified Impact
statements or Products. For instance, GS VERs or GS CERs with REC labels
cannot be claimed for the same MWh.
3.5.2 | Where a Suppressed Demand baseline is applied, it is not allowed to ‘stack’
Gold Standard Certified Impact Statements or Products as the definition of the
baseline may be contradictory.
4.1.1 | Project shall mandatorily contribute to SDG 13 (Climate Action) and two other
SDGs. It is recommended to include a contribution to SDG 7 (Affordable and
Clean Energy) as one of the other 2 SDGs.
4.3.1 | Projects shall identify and engage relevant stakeholders and seek expert
stakeholder input where necessary in the design, planning and
implementation. Specific stakeholder consultation requirements for
hydropower, renewable biomass, MSW incineration projects are outlined in
Annex A of this document.
4.4.1 | The project start date shall be determined as per paragraph 4.1.39 of
Principles & Requirements.
4.4.2 | Projects may receive Issuance of Certified Impact Statements or Products for
a maximum of three Certification Renewal Cycles i.e., a total of 15 years,
unless mentioned otherwise in the Product Requirements.
4.4.3 | Projects shall mandatorily undergo Design Certification Renewal every 5 years
as per Principles & Requirements.
4.4.4 | The baseline shall be reassessed at the time of Crediting Period Renewal
following the applicable methodology and Principles & Requirements.
4.5.1 | Projects seeking the issuance of Certified Impact Statements or Products (for
example GS VERs) shall demonstrate financial additionality and Ongoing
Financial Need in accordance with Principles & Requirements unless
mentioned otherwise in the Product Requirements.
4.5.2 | Project and VPAs, where applicable may refer to valid CDM Tool 32:
Methodological tool: Positive list of technologies to demonstrate additionality.
Under no circumstances should deemed automatic additionality conditions
imply an exemption from the Gold Standard eligibility criteria related to the
technology types.
4.5.3 | Projects and VPAs shall meet prior consideration requirements in accordance
with paragraph 4.1.49 and 4.1.50 of Principles & Requirements.
4.5.4 | An eligible Microscale project that meets any one of the criteria below shall be
deemed additional:
14
Office of the High Representative for the Least Developed Countries,
Landlocked Developing Countries and Small Island Developing States <
https://www.un.org/ohrlls/>
15
Refer to SUZ definition & applicable criteria – paragraph 8 (a) of CDM
Methodological tool for Demonstrating additionality of microscale project
activities or latest version of this tool.
16
“Communities” of consumers may for example include households;
Applications may include lighting (interior, public street lighting),
electrical appliances such as refrigerators. No specific definition of ‘poor
communities’ is pre-established. The international or national definitions
such as populations below poverty line can serve as the basis to assess
the eligibility of the targeted communities.
17
https://cdm.unfccc.int/DNA/submissions/index.html
1.1.1 | The Gold Standard will evaluate the eligibility of hydropower activities with an
installed capacity greater than 20 MW on a case-by-case basis at the time of
preliminary review. This 20 MW capacity threshold shall apply to each one of
the project activities as part of a bundle, and not to the overall bundle, and to
each CPA/VPA as part of a PoA. The Project Developer shall provide the
following additional information as part of the documentation to be reviewed:
a. A Stakeholder Consultation Report, in accordance with the relevant
Stakeholder Consultation and Engagement Requirements. For project
activities involving existing dams (such as dams built for irrigation
purposes), the stakeholder consultation shall include a site-visit by local
stakeholders taking part in the consultation.
b. A Compliance Report showing that the project is in compliance with the
latest World Commission on Dams (WCD) guidelines18, validated by a VVB.
1.1.2 | Hydropower projects located in High Conservation Values (HCVs) 19 areas shall
NOT be eligible for certification under Gold Standard for the Global Goals
(GS4GG). The Project Developers must assess if the project activity is located
in HCVs area. For such assessment, the Project Developer shall consult with
local government authorities AND refer to existing international sources of
information such as the World Database on protected planets, IUCN, UNEP,
the Ramsar list of wetlands, and the United Nations list of protected areas.
The outcome of the assessment shall be provided with the project
documentation submitted for preliminary review.
1.1.3 | Unless deemed by the Gold Standard as already addressed satisfactorily as
part of an existing Environmental and Social Impact Assessment (ESIA), the
opinion of an independent, relevant expert(s) shall be provided, at a
minimum, on all of the following assessment questions (evidence must be
provided to substantiate the opinion to justify the relevance or non-relevance
of a given assessment question):
18
https://www.irn.org/wcd/
19
Refer to High Conservation Value Resource Network for definition of
High Conservation Value Area. Available at https://hcvnetwork.org/
a. Are there any competing uses of water The expert opinion must be provided in
resources at the project location, of time for validation and be reflected in
what nature and how severe are they? the Monitoring Plan for verification
along the crediting period.
Convincing evidence must be provided
that the hydropower project does not
divert water from other current users or
if it does, these users are in agreement
with the shift of use.
b. What is the minimum ecological flow The expert opinion shall be provided in
that shall be complied with at any point time for validation.
in time, accounting for the specificities
of local ecosystems and seasonality?
Is it indeed effective over the crediting The expert opinion shall be provided in
period, and if not, how shall it be time for verification.
improved?
f. What mitigation measures shall be put The expert opinion shall be provided in
in place to prevent soil erosion? time for validation.
Are they effective and if not, what The expert opinion shall be provided in
complementary action shall be taken? time for verification.
1.1.4 | Besides the assessment questions listed above, the expert(s) is free to include
any other issue that they identify as being relevant to the project. The Gold
Standard, Project Representative(s) and the independent expert shall enter
1.2.1 | Project activities making use of non-renewable biomass resources shall NOT
be eligible for Gold Standard registration. Project developers shall, therefore,
provide convincing evidence that the project activities make use of renewable
biomass resources. The renewability of the biomass shall be monitored
throughout the crediting period and be included in the Monitoring & Reporting
Plan, where required by the applied Impact quantification methodology.
1.2.2 | Project activities expected to make use of biomass resources already in use
shall NOT be eligible for Gold Standard registration unless convincing
evidence is provided to demonstrate that the current users agree with the
envisioned shift of use (potential leakage associated to such a shift must be
taken into account). In the absence of such an agreement, Project Developers
shall demonstrate that their project activity makes use of surplus biomass 20
for each type of biomass resources used. They must do so once, ex-ante on
20
The demonstration of surplus biomass (for each type of biomass resource) shall be made by
the Project Developers by applying the latest version of the CDM Methodological Tool: Project
and leakage emissions from biomass.
time for validation for small-scale project activities (installed capacity upto 15
MWel or 45 MWth), and in time for validation and for each one of the
verifications (inclusion in the Monitoring Plan) for project activities greater
than 15 MWel or 45 MWth.
1.2.3 | Project Developers shall demonstrate that their project will only make use of
degraded land and shall include this criterion in the Sustainability Monitoring
Plan to ensure there is no diversion of land from other essential purposes like
food production. Two exceptions may be considered:
a. Convincing evidence is provided showing that the envisioned energy crop
is part of a traditional rotational cropping, OR
b. An increase of the productivity is obtained, locally and to the benefit of
the current users, through measures implemented in the context of the
activity so as to at minimum compensate for the part of the land newly
allocated to growing the energy crop.
Compliance with these criteria above must be monitored over the crediting
period and thus be part of the Monitoring & Reporting Plan.
1.2.4 | Activities making use of GMOs shall also comply with the requirements
prescribed in ’Principle 9.3 - Genetic Resources‘ of the Safeguarding Principles
and Requirements.
1.2.5 | Activities resulting in avoidance of methane from biomass decay shall be
eligible as long as biomass is used as a substitution for non-renewable fuels in
project activities delivering energy services or for the production of a usable
product with demonstrable sustainable development benefits (e.g.
composting).
1.2.6 | The use of non-renewable fuel in biomass heat and/or electricity generation
plants is authorised as long as the renewable fuel share reaches 50% 21 after
the first 3 years of operation for retrofit projects, and represents 80% 22 from
the outset for Greenfield projects.
1.2.7 | The eligibility of project activities making use of Palm oil and/or palm oil mill
by-products or residues for electricity and/or heat generation, and/or for
biofuel production shall be evaluated on a case-by-case basis by Gold
21
Refers to the percentage of the total fuel consumed on an annual energy basis.
22
The reference date for the 3-year period is the start date of crediting period.
1.3 | Project activity using Biogas (landfill gas and biogas from agro-
processing, wastewater and other residues)
1.3.1 | Methane recovery project activities shall be eligible for emission reductions
from both methane avoidance (including from the flared biogas fraction) and
non-renewable fuel substitution as long as evidence is provided on time for
validation to demonstrate that the system was designed in a way to at least
make use of some of the biogas recovered for the delivery of energy services
(e.g., electricity, heat).
1.3.2 | Methane recovery project activities at wastewater treatment plants related to
Palm Oil production shall comply with all the Palm Oil related rules mentioned
above (paragraph 1.2.7 |above).
1.4.1 | Project activities involving waste heat recovery in industrial processes shall be
eligible for emission reductions related to on-site energy consumption.
Emission reductions related to the export of heat or electricity generated from
waste heat shall NOT be eligible unless it can be shown that the primary and
unique source of energy for the industrial process is renewable energy. This
requirement applies on an annual basis and the electricity generation profile
23
RSPO Website http://www.rspo.org
1.6.1 | Eligible Municipal Solid Waste (MSW) incineration activities seeking Gold
Standard certification shall also meet the following requirements:
b. Project Eligibility:
ii. Project activities planning to make use of waste materials that are
already in use in the pre-project situation shall NOT be eligible unless
convincing evidence is provided to show that the current users agree
with the shift of use resulting from the project. In the absence of such
an agreement, the Project Developers shall demonstrate that the
ii. The Project Developer shall put into place measures to ensure
compliance with host country or other applicable regulations.
24
The demonstration of surplus waste materials shall be made by the project developer by
following the approach prescribed for demonstrating surplus biomass in the latest version of
the CDM Methodological Tool: Project and leakage emissions from biomass.
ii. The Project Developer shall include the relevant information in the
Annual Report, as required under Gold Standard for the Global Goals.
1.7.1 | Project activities planning to make use of waste materials that are already in
use in the pre-project situation shall NOT be eligible unless convincing
evidence is provided to show that the current users are in agreement with the
shift of use resulting from the project. In the absence of such an agreement,
the Project Developers shall demonstrate that the project activity makes use
of surplus waste materials 25 and shall include this analysis in the
Sustainability Monitoring Plan. They must do so once, ex-ante on time for
validation for small-scale projects (installed capacity upto 15 MWel or 45
MWth), and in time for validation and for each one of the verifications
(inclusion in the Sustainability Monitoring Plan) for projects greater than 15
MWel or 45 MWth.
25
The demonstration of surplus waste materials shall be made by the project developer by
following the approach prescribed for demonstrating surplus biomass in the latest version of
the CDM Methodological Tool: Project and leakage emissions from biomass.
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